Board governance is a critical element in the success of a company however, it also has its own challenges. It doesn’t matter if the challenge is making sure the board is up-to-date on the latest best practices or the challenge of overcoming resistance to change, there are always new hurdles to be overcome.
This article discusses several emerging best practices which have the potential to take a company to a new level. It reviews the latest developments in continuing education for board members and provides best practices related to director evaluations, committee rotations and other aspects. Additionally, it discusses the ways that an online portal for boards can enhance transparency and improve efficiency.
A strong, effective board requires a balanced mix of directors. It is crucial that the board has a wide range of backgrounds, talents and experiences to offer a variety of perspectives in strategic discussions. It is also essential to create a culture of transparency and trust within the board in order for directors to communicate easily with one another.
The board should be completely independent of any external interest that might cloud their judgment in their decision-making. This is crucial for maintaining governance and protecting the reputation of the company. It is also crucial for the board to set a clear direction at the top by ensuring that they adhere to high ethical standards and showing fairness to employees, shareholders and the public. Finally, the board should make it a priority to have sufficient time for executive sessions at every regular board meeting in order to fulfill their legal obligations.